The U.S. Department of Commerce published a preliminary affirmative countervailing duty determination on October 8, assigning a uniform estimated subsidy rate of 107.57% to imports of rubber accelerator CBS from China. The ruling covers N-Cyclohexylbenzothiazole-2-Sulfenamide, also known as CBS or Accelerator CZ, and applies to several named Chinese manufacturers and exporters as well as all other suppliers. Commerce determined that countervailable subsidies were being provided to Chinese producers and exporters and instructed U.S. customs authorities to suspend liquidation of covered imports and collect cash deposits at the preliminary rates.
The ruling includes a significant retroactive component. Commerce also issued an affirmative preliminary critical circumstances determination, extending the suspension of liquidation to qualifying imports entered during the 90 days preceding publication of the notice. The retroactive measure applies to covered entries that remain unliquidated, including merchandise withdrawn from warehouses for consumption during the applicable period. U.S. Customs and Border Protection will implement the suspension and associated cash deposit requirements.
The department assigned a preliminary subsidy rate of 107.57% to Shandong Derek New Materials, Shandong Yanggu Huatai International and Shandong Sunsine Chemical. Alchemy Trading Shanghai, Kemai Chemical, SAIC Motor Corporation and Yingtai International Trading also received the same rate. The estimated subsidy rate for all other Chinese producers and exporters was likewise set at 107.57%.
The uniform rate reflects Commerce's use of adverse facts available (AFA) during the investigation. According to the preliminary determination, Shandong Derek, Shandong Yanggu Huatai and several companies that failed to respond to the department's quantity and value questionnaires did not cooperate to the best of their ability. Commerce consequently relied on available information and adverse inferences when establishing the preliminary subsidy rates. The same investigative findings contributed to the department's preliminary critical circumstances determination.
The investigation originated from a petition filed by LANXESS Corporation in May 2026. Commerce initiated the countervailing duty investigation on May 27 and published the initiation notice on June 2. The investigation covers the period from January 1 through December 31, 2025, and is being conducted alongside a separate antidumping investigation involving the same product.
Following a request from LANXESS, Commerce aligned the final countervailing duty determination with the companion antidumping proceeding. The final determination is currently scheduled for no later than January 11, 2027, unless postponed. The U.S. International Trade Commission will separately determine whether imports of Chinese CBS are causing or threatening material injury to the domestic industry.
CBS is used in rubber manufacturing, including tire production and the manufacture of industrial hoses, belts and other rubber products. The investigation covers CBS in powder, oiled powder and granular forms, as well as other forms included in the specified product scope.
